The final three months of 2013 saw sales of PCs slump by almost 20% compared to the same period last year.
According to research firm Gartner, 1.96 million PCs, including mobile and desktop, were sold in the final quarter of 2013.
Vishal Tripathi, principal research analyst at Gartner, said the 19.9% decline was exacerbated by a lack of spending from government.
”In the absence of any government orders this quarter, the Indian PC market performed dismally, re-emphasizing the fact that with current economic sentiments and the current political scenario, enterprises are deferring their purchases.”
Gartner said consumers accounted for 49% of total PC sales in the period.
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The largest chunk of the Indian of the PC market (44%) is made up of white boxes (including parallel imports), according to Gartner. But these declined 10%. Mobile PCs, which make up a smaller proportion of the sector increased 27% year on year.
In developing markets, such as the UK, PC sales are on the decline as businesses and consumers increasingly invest in tablet computers.
Mikako Kitagawa, principal analyst at Gartner, said: "Strong growth in tablets continued to negatively impact PC growth in emerging markets. In emerging markets, such as India, the first connected device for consumers is most likely a smartphone, and their first computing device is a tablet. As a result, the adoption of PCs in emerging markets will be slower as consumers skip PCs for tablets."
Tablet sales in India in the third quarter of 2013 increased by 9% compared to the same period 12 months ago, according to research from CMR. It revealed that in India over 1.2 million tablets were sold by 43 suppliers during the three-month period. CMR expects Indian businesses to increasingly invest in Windows-based tablets this year.